Bank of Canada lowers overnight rate target to 1 ¼ percent
The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. The Bank Rate is correspondingly 1 ½ percent and the deposit rate is 1 percent.
While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding.
The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. The Bank Rate is correspondingly 1 ½ percent and the deposit rate is 1 percent.
While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding.
#WaveAnalysis
#CADJPY reversed from support zone
Likely to rise to 81.00
https://fxpro.news/market-snapshots/cadjpy-wave-analysis-04-march-2019-20200304/
#CADJPY reversed from support zone
Likely to rise to 81.00
https://fxpro.news/market-snapshots/cadjpy-wave-analysis-04-march-2019-20200304/
#WaveAnalysis
Natural Gas (#NTG) reversed from long-term support area
Likely to rise to 2.00
https://fxpro.news/market-snapshots/natural-gas-wave-analysis-04-march-2019-20200304/
Natural Gas (#NTG) reversed from long-term support area
Likely to rise to 2.00
https://fxpro.news/market-snapshots/natural-gas-wave-analysis-04-march-2019-20200304/
Without massive OPEC cuts, Brent may drop to $40 area
Brent rebounded from 2.5-year lows earlier this week, stabilizing around $52.0 in anticipation of OPEC oil ministers’ decision.
If OPEC+ launches a rally in the oil market through active production cuts, it will only fill the wallets of U.S. producers and potentially create even stricter competition for traditional markets.
In our view, while markets are waiting for an oil rally in response to stricter restrictions from the cartel, we cannot refuse the scenario of late 2014, when Saudi Arabia pursued a self-balancing approach to the market, intervening only in early 2016 when prices collapsed below $30.
https://fxpro.news/analysis-and-insight/without-massive-opec-cuts-brent-may-drop-to-40-area-20200305/
Brent rebounded from 2.5-year lows earlier this week, stabilizing around $52.0 in anticipation of OPEC oil ministers’ decision.
If OPEC+ launches a rally in the oil market through active production cuts, it will only fill the wallets of U.S. producers and potentially create even stricter competition for traditional markets.
In our view, while markets are waiting for an oil rally in response to stricter restrictions from the cartel, we cannot refuse the scenario of late 2014, when Saudi Arabia pursued a self-balancing approach to the market, intervening only in early 2016 when prices collapsed below $30.
https://fxpro.news/analysis-and-insight/without-massive-opec-cuts-brent-may-drop-to-40-area-20200305/
Major central banks can trigger crypto demand
After another stage of a tug-of-war between bulls and bears, Bitcoin showed a growth of 1% above $8,900 on Thursday morning.
It is an easing of monetary policy, that is believed in the crypto community to be capable of increasing demand for cryptocurrencies. The larger the money supply, the lower the rates and the cheaper the national currencies, the higher the demand for deficit assets with a limited emission, to which market participants attribute Bitcoin.
https://fxpro.news/analysis-and-insight/major-central-banks-can-trigger-crypto-demand-20200305/
After another stage of a tug-of-war between bulls and bears, Bitcoin showed a growth of 1% above $8,900 on Thursday morning.
It is an easing of monetary policy, that is believed in the crypto community to be capable of increasing demand for cryptocurrencies. The larger the money supply, the lower the rates and the cheaper the national currencies, the higher the demand for deficit assets with a limited emission, to which market participants attribute Bitcoin.
https://fxpro.news/analysis-and-insight/major-central-banks-can-trigger-crypto-demand-20200305/
Stock market volatility is growing again in the morning amid corrective rollback of indices. A day earlier, the S & P500 jumped 4.2%, and before the start of trading in the US, futures indicated a 2.4% drop. EuroStoxx50 loses more than 2%, FTSE100 is down 1.9% since the beginning of the day.
The dollar is declining, having a direct correlation with stocks. This rare correlation is associated with growing expectations of further Fed 50 bp rate cuts on March 18.
Safe-heavens are again in the lead to growth to USD.
Gold adds nearly 1% to $ 1,655.
Brent dropped to $50.9 amid disappointment among market participants by Russia’s reluctance to support aggressive measures to reduce production.
Heads of the Bank of England and Canada will speak later in the evening, and US NFP report publishing on Friday may lead to a new jump in volatility.
The dollar is declining, having a direct correlation with stocks. This rare correlation is associated with growing expectations of further Fed 50 bp rate cuts on March 18.
Safe-heavens are again in the lead to growth to USD.
Gold adds nearly 1% to $ 1,655.
Brent dropped to $50.9 amid disappointment among market participants by Russia’s reluctance to support aggressive measures to reduce production.
Heads of the Bank of England and Canada will speak later in the evening, and US NFP report publishing on Friday may lead to a new jump in volatility.
#WaveAnalysis
#USDCHF broke key support level 0.9610
Likely to fall to 0.9450
https://fxpro.news/market-snapshots/usdchf-wave-analysis-05-march-2019-20200305/
#USDCHF broke key support level 0.9610
Likely to fall to 0.9450
https://fxpro.news/market-snapshots/usdchf-wave-analysis-05-march-2019-20200305/
#WaveAnalysis
#Gold reversed from support zone
Likely to rise to 1690.00
https://fxpro.news/market-snapshots/gold-wave-analysis-05-march-2019-2-20200305/
#Gold reversed from support zone
Likely to rise to 1690.00
https://fxpro.news/market-snapshots/gold-wave-analysis-05-march-2019-2-20200305/
A multi-year USD downward trend has probably begun
The stock indices rebound on Wednesday was accompanied only by the suspension of the Swiss franc and yen growth. Due to negative interest rates in the Eurozone, the single currency is also increasingly visible to investors during periods of sell-off of risk assets.
In the short term, demand for the yen, the franc and the euro, as safe-havens, means that demand for protective assets prevails against the background of liquidation of risk positions. It is a symptom of further market weakening in the coming days. From a longer-term perspective, a weak dollar will sooner or later turn the markets towards growth. In our case, we should say that the situation will worsen first, and only then will correct.
https://fxpro.news/daily-forex-outlook/a-multi-year-usd-downward-trend-has-probably-begun-20200306/
The stock indices rebound on Wednesday was accompanied only by the suspension of the Swiss franc and yen growth. Due to negative interest rates in the Eurozone, the single currency is also increasingly visible to investors during periods of sell-off of risk assets.
In the short term, demand for the yen, the franc and the euro, as safe-havens, means that demand for protective assets prevails against the background of liquidation of risk positions. It is a symptom of further market weakening in the coming days. From a longer-term perspective, a weak dollar will sooner or later turn the markets towards growth. In our case, we should say that the situation will worsen first, and only then will correct.
https://fxpro.news/daily-forex-outlook/a-multi-year-usd-downward-trend-has-probably-begun-20200306/
Bitcoin is again on a growth wave, which allowed it not only to overcome the psychological level of $9K but also consolidated a little higher. The short-lived attack of the bears was repulsed, and on Friday morning BTCUSD trades at $9,100. The growth takes place against the background of an 8% increase in trading volumes, which is not a bad sign for the market. Besides, the rate has now returned to the 200 SMA, gaining support on the way down to the 50 SMA. The Crypto Fear & Greed Index is in "fear" mode, having lost three pips in the last 24 hours.
In the last seven days, the total capitalization of the cryptocurrencies has increased by $10bn. The situation with the coronavirus is far from over, so stocks are still declining. Against this background, the cryptocurrencies demonstrate relative stability. At first, they took the hit, as well as other risky assets, but it seems that digital currencies have some immunity to decline further.
In the last seven days, the total capitalization of the cryptocurrencies has increased by $10bn. The situation with the coronavirus is far from over, so stocks are still declining. Against this background, the cryptocurrencies demonstrate relative stability. At first, they took the hit, as well as other risky assets, but it seems that digital currencies have some immunity to decline further.
There is no shortage of strong moves on Friday, despite the proximity of the US NFP publication, in anticipation of which the markets often subside. A day earlier, the S & P500 lost 3.4%, and before the start of trading in the US, futures indicated a 2.6% drop. EuroStoxx50 loses more than 3.7%; the FTSE100 is down 3.3% since the beginning of the day.
The dollar tumbles down to major currencies, but adds to RUB, ZAR, as the markets expect even more aggressive easing from the Fed, expecting less active action from other central banks. AUD and NZD stand out among those growing against the dollar - sales pressure is not as intense in Asia as in Europe and the USA.
Gold is storming this year highs near 1690, adding 0.8%.
Brent collapsed to $ 47.5, to 2.5-year lows amid difficult negotiations between OPEC and Russia.
The dollar tumbles down to major currencies, but adds to RUB, ZAR, as the markets expect even more aggressive easing from the Fed, expecting less active action from other central banks. AUD and NZD stand out among those growing against the dollar - sales pressure is not as intense in Asia as in Europe and the USA.
Gold is storming this year highs near 1690, adding 0.8%.
Brent collapsed to $ 47.5, to 2.5-year lows amid difficult negotiations between OPEC and Russia.
#WaveAnalysis
#USDJPY broke support levels 106.40, 107.5
Likely to fall to 104.60
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-06-march-2019-20200306/
#USDJPY broke support levels 106.40, 107.5
Likely to fall to 104.60
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-06-march-2019-20200306/
#WaveAnalysis
#AUS200 falling sharply
Further losses likely toward 6000.00
https://fxpro.news/market-snapshots/aus200-wave-analysis-06-march-2019-20200306/
#AUS200 falling sharply
Further losses likely toward 6000.00
https://fxpro.news/market-snapshots/aus200-wave-analysis-06-march-2019-20200306/
#WaveAnalysis
#USDCHF broke support area
Likely to fall to 0.9250
https://fxpro.news/market-snapshots/usdchf-wave-analysis-06-march-2019-20200306/
#USDCHF broke support area
Likely to fall to 0.9250
https://fxpro.news/market-snapshots/usdchf-wave-analysis-06-march-2019-20200306/
#WaveAnalysis
#Boeing falling inside impulse wave (3)
Likely to test support level 250.00
https://fxpro.news/market-snapshots/boeing-wave-analysis-06-march-2019-20200306/
#Boeing falling inside impulse wave (3)
Likely to test support level 250.00
https://fxpro.news/market-snapshots/boeing-wave-analysis-06-march-2019-20200306/
🌞Trading time changes as DST starts in US
On March 08, 2020, the USA shifts to the Daylight Saving Time.
In this regard, from March 09 trading time schedule of several financial classes will be temporarily changed.
It will affect some assets of the following classes:
📍CFD on Forex & Cryptos
📍CFD on Spot Metals
📍CFD on the US shares
📍CFD on Spot Indices
📍CFD on Spot Energies & Energy Futures
📍CFD on Futures
Please see the details in the FxPro Market Holidays calendar: https://www.fxpro.com/trading-tools/market-holidays
Trading CFDs involves significant risk of loss.
On March 08, 2020, the USA shifts to the Daylight Saving Time.
In this regard, from March 09 trading time schedule of several financial classes will be temporarily changed.
It will affect some assets of the following classes:
📍CFD on Forex & Cryptos
📍CFD on Spot Metals
📍CFD on the US shares
📍CFD on Spot Indices
📍CFD on Spot Energies & Energy Futures
📍CFD on Futures
Please see the details in the FxPro Market Holidays calendar: https://www.fxpro.com/trading-tools/market-holidays
Trading CFDs involves significant risk of loss.
FxPro
FxPro Group | 27+ Years in Financial Technology
Discover the technology, products and innovation behind FxPro - financial services provider and market maker with 27+ years experience.
Oil collapse destabilized world markets
It is hard to imagine a more negative combination of factors that are now acting against Oil. No exaggeration, it’s a real perfect storm:
– demand is plummeting as the world quarantine expands;
– additional pressure on strengthened risk aversion;
– Russia’s readiness to increase production since April and rejection of the OPEC plans;
– Saudi Arabia’s announcement on lowering oil prices for Europe and vows to increase production.
Cheap Oil often fuels economic growth. However, the extreme prices volatility forms an almost mass rejection of risks. In the longer term, when the first shock of oil price collapse passes, the low price of commodities promises to provide support for the world economy. This was the case after the previous two dropdowns in 2008 and 2016, which boosted global economic growth afterwards and helped much of the stock to find the basis for growth.
https://fxpro.news/daily-forex-outlook/oil-collapse-destabilized-world-markets-20200309/
It is hard to imagine a more negative combination of factors that are now acting against Oil. No exaggeration, it’s a real perfect storm:
– demand is plummeting as the world quarantine expands;
– additional pressure on strengthened risk aversion;
– Russia’s readiness to increase production since April and rejection of the OPEC plans;
– Saudi Arabia’s announcement on lowering oil prices for Europe and vows to increase production.
Cheap Oil often fuels economic growth. However, the extreme prices volatility forms an almost mass rejection of risks. In the longer term, when the first shock of oil price collapse passes, the low price of commodities promises to provide support for the world economy. This was the case after the previous two dropdowns in 2008 and 2016, which boosted global economic growth afterwards and helped much of the stock to find the basis for growth.
https://fxpro.news/daily-forex-outlook/oil-collapse-destabilized-world-markets-20200309/
#WaveAnalysis
#EURO50 reversed from support area
Likely to rise to 3135.00
https://fxpro.news/market-snapshots/euro50-wave-analysis-09-march-2019-20200309/
#EURO50 reversed from support area
Likely to rise to 3135.00
https://fxpro.news/market-snapshots/euro50-wave-analysis-09-march-2019-20200309/
#WaveAnalysis
#USDCHF reversed from key support level 0.9200
Likely to rise to 0.9400
https://fxpro.news/market-snapshots/usdchf-wave-analysis-09-march-2019-20200309/
#USDCHF reversed from key support level 0.9200
Likely to rise to 0.9400
https://fxpro.news/market-snapshots/usdchf-wave-analysis-09-march-2019-20200309/
Stock market volatility rolls over. Trading in US indices trading halted during the day after reaching the limit-down, losing more than 8% from Friday's closing level. EuroStoxx50 decreased by 7%, partially recovering from more than 10% intraday drawdown, FTSE100 declining 6.5% from 9.9% drop earlier.
The dollar index decreased to lows since October 2018; the FX market volatility is off the screens. JPY, EUR, CHF add more than 1% to the dollar.
Extreme volatility in stocks and commodity assets has played against gold, which is losing 0.9% to $ 1,667.
Brent is trading near $37, +13% from the intraday lows, but still 19% lower than Friday's close at $45.6. WTI rebounded to $35 after falling to $27.62 - the lowest since 2003.
The views of investors switched to the possible actions of the monetary and financial authorities of different countries in response to increased market volatility.
The dollar index decreased to lows since October 2018; the FX market volatility is off the screens. JPY, EUR, CHF add more than 1% to the dollar.
Extreme volatility in stocks and commodity assets has played against gold, which is losing 0.9% to $ 1,667.
Brent is trading near $37, +13% from the intraday lows, but still 19% lower than Friday's close at $45.6. WTI rebounded to $35 after falling to $27.62 - the lowest since 2003.
The views of investors switched to the possible actions of the monetary and financial authorities of different countries in response to increased market volatility.